New Delhi, Sep 3 (IANS): The cabinet Tuesday approved the upgrading of National Highway-65 connecting Haryana with Rajasthan under the National Highways Development Programme (NHDP) with a total outlay of Rs.2,029.49 crore.

The Cabinet Committee on Economic Affairs (CCEA) approved the development of the Kaithal (Haryana)-Rajasthan border section of the national highway-65.

The project will be developed as a four-lane road on a design, build, finance, operate and transfer (DBFOT) basis on a toll model, with a total length of 166 km.

"The project will expedite improvement of infrastructure in Haryana and also reduce the time and cost of travel for traffic, particularly heavy traffic, plying between the Kaithal-Rajasthan border," the CCEA said in a statement.

"This road stretch connects Ambala with important towns such as Kaithal, Barwala, Hisar up to the Rajasthan border."

According to CCEA, the project cost will include Rs.636.49 crore to be utilised towards land acquisition, resettlement and rehabilitation activities.